Caledonia defers dividend over Covid-19

Harare, (New Ziana) – Blanket Mine’s parent company, Caledonia Mining Corporation, said on Wednesday it had deferred a decision on a second quarterly dividend for 2020 due to uncertainties linked to the outbreak of the coronavirus.

Production at the Gwanda-based gold miner is still going on, but at a
lower scale after government announced a nationwide lockdown to contain
the spread of COVID-19.

Caledonia has, without fail, paid out quarterly dividends to its shareholders since 2014.

The miner has said it had enough operational consumables to survive the lockdown in South Africa, its main supplier, without interrupting
production.

Both South Africa and Zimbabwe, have confirmed cases and deaths related to COVID-19 and are currently instituting lockdowns restricting movement of people in a bid to contain the spread of the virus.

The dividend payments were “an important element of the company’s strategy to create and enhance shareholder value,” Caledonia said.

“Provided the measures taken by the Zimbabwe and South African governments do not result in severe and/or prolonged interruptions to operations, the effect of such measures should not impede the company’s ability to resume the payment of quarterly dividends,” the Canadian headquartered mining firm said.

“At the current quarterly dividend rate of 7.5 cents per share, the dividend payment that was scheduled for payment in April amounts to
approximately $860 000, less than seven percent of Caledonia’s currently available cash.”

Caledonia’s cash position on March 26 was $12.5million.

Caledonia’s chairman, Leigh Wilson said the business would likely emerge from the coronavirus crisis “substantially unchanged.”

“The resumption of dividends will depend on, inter alia, Blanket maintaining a reasonable level of production; receiving payment in full and on-time for all gold sales, being able to make the necessary local and international payments and being able to replenish its supplies of consumables and other items,” he said.

The miner is targeting to produce between 53 000oz to 56 000oz of gold
this year.
New Ziana